Core Viewpoint - The report from Dongwu Securities indicates that independent energy storage is set to follow the growth of new energy storage in China, with supportive capacity pricing policies being introduced, leading to strong growth potential in the domestic energy storage market [1] Energy Storage Sector - In the first nine months of 2025, domestic energy storage bidding reached 102 GWh, representing a 30% year-on-year increase, indicating a robust bidding environment [1] - The price of energy storage equipment has begun to rebound due to tight supply and demand for battery cells, with the bidding prices having bottomed out [1] - In the U.S., cumulative installations from January to August 2025 reached 8,043 MW, a 33% increase year-on-year, corresponding to 25.1 GWh, which is a 46% increase year-on-year [4] Photovoltaic Sector - In August 2025, domestic installations decreased by 55.29%, indicating weak terminal demand, while overseas demand continues to grow steadily [2] - The total installed capacity from January to August 2025 was 230.61 GW, a 65% year-on-year increase [2] - The average price of monocrystalline silicon wafers increased by 8% month-on-month to 1.35 yuan per piece as of September 24, 2025, indicating a recovery in prices [3] Wind Power Sector - Wind power installations reached 58 GW from January to August 2025, a 72% year-on-year increase, with Q3 showing continued upward delivery trends for both onshore and offshore wind [5] - Offshore wind project progress in Jiangsu and Guangdong is proceeding smoothly, with expectations for deep-sea wind power to catalyze further growth [5]

Core Insights - The report highlights a significant decline in domestic solar installations in August 2025, with a 55.29% decrease compared to the previous month, indicating weak terminal demand, while overseas demand remains stable [1][2] - Cumulative solar installations from January to August 2025 reached 230.61 GW, reflecting a year-on-year growth of 65% [2] - The report also notes a substantial increase in solar component exports in August 2025, with 25.02 GW exported, marking a year-on-year increase of 29.7% [2] Domestic Market Analysis - In August 2025, the newly added solar capacity was 7.36 GW, down 55.29% from the previous month, indicating weak domestic demand [2] - The focus for the domestic solar market in September and October 2025 will be on the implementation of the national 136 document and the first round of bidding [2] - The report mentions that the National Standardization Administration has completed the revision of mandatory energy consumption standards for polysilicon, tightening existing standards [2] Overseas Market Analysis - The cumulative export of solar components from January to August 2025 was 166.09 GW, showing a year-on-year decline of 3.03% [2] - In the U.S., the newly added solar capacity in Q2 2025 was 7.5 GW, representing a year-on-year growth of 9.83% [1][2] Industry Pricing and Production - In September 2025, polysilicon production was approximately 130,000 tons, with total social inventory expected to be around 440,000 to 450,000 tons, indicating potential inventory pressure [3] - The average price of N-type polysilicon was 51.7 yuan/kg, with production exceeding demand [3] - The average price of 182mm monocrystalline silicon wafers increased by 8% month-on-month to 1.35 yuan/piece [3] Energy Storage Market - The U.S. saw a cumulative installation of 8,043 MW of energy storage from January to August 2025, a year-on-year increase of 33% [4] - In China, energy storage capacity is expected to grow significantly, with 102 GWh of energy storage tenders issued from January to September 2025, a 30% year-on-year increase [4] Investment Recommendations - The report suggests focusing on high-growth areas such as inverters and brackets, recommending companies like Sungrow Power Supply and Longi Green Energy [5] - It also highlights the benefits of supply-side reforms for leading solar companies and emphasizes the importance of new technology leaders in the industry [5]

Core Viewpoint - Huadian International Power Co., Ltd. reported a decline in electricity generation and grid-connected electricity for the first three quarters of 2025, primarily due to the increasing installed capacity of renewable energy and reduced utilization hours of coal-fired units [1] Group 1: Financial Performance - As of September 30, 2025, the cumulative electricity generation was 201.33 million megawatt-hours, representing a decrease of approximately 5.87% compared to the adjusted figures from the previous year [1] - The total grid-connected electricity was 189.24 million megawatt-hours, showing a decline of about 5.94% from the adjusted figures of the same period last year [1] - The average grid-connected electricity price for the first three quarters of 2025 was approximately RMB 509.55 per megawatt-hour, which is a decrease of around 2.76% compared to the adjusted figures from the previous year [1] Group 2: Industry Trends - The primary reason for the decline in electricity generation and grid-connected electricity is the continuous increase in renewable energy installed capacity, leading to a reduction in the utilization hours of coal-fired power units [1]

Group 1: Consumer Sector - The consumer market is experiencing a boost due to seasonal changes and government policies, with a notable increase in demand during the "Golden September and Silver October" period [2][6] - From January to July this year, the total retail sales of consumer goods increased by 4.8% year-on-year, with dining revenue up by 3.8% and retail goods sales up by 4.9% [3] - Seasonal transitions are driving new consumption trends, with increased interest in autumn clothing, skincare products, and seasonal food and beverages [5] Group 2: Healthcare Sector - The change in seasons is expected to create new investment opportunities in the healthcare sector, particularly due to increased health demands as respiratory diseases become more prevalent [8][9] - The World Health Organization reports approximately 1 billion seasonal flu cases annually, highlighting the rising health protection needs during the autumn [9] Group 3: Agriculture Sector - The agricultural sector is poised for investment opportunities as the autumn harvest signals increased grain production, supported by advancements in agricultural mechanization and smart farming [14][15] - In 2024, the total area for autumn grain planting is projected to be 87,951.2 thousand hectares, with a yield of 6,008.3 kg per hectare, leading to a total production of 52,843.4 million tons [15] Group 4: Energy Sector - The autumn season marks a peak for construction activities and energy storage, with traditional energy demand rising and new energy sources entering efficient operational phases [20][21] - The construction season is expected to boost energy consumption, particularly in high-energy industries like steel and cement, while traditional energy procurement is increasing in preparation for winter [22][23] - As temperatures drop, solar and wind energy generation is expected to see significant growth, with solar power capacity reaching 1,111 million kilowatts, a 50.8% year-on-year increase [24]

Core Viewpoint - The wind power sector in both Hong Kong and A-shares has shown significant strength, with various stocks experiencing notable gains, driven by positive fundamentals and supportive policies [1][4][5]. Group 1: Market Performance - The wind power equipment sector has seen a remarkable rally, with stocks like Weili Transmission and Jixin Technology hitting the daily limit up [1][2]. - The wind power equipment sector has increased nearly 60% year-to-date since hitting a low on April 9 [2]. - Key stocks in the sector include Weili Transmission (+20%), Jixin Technology (+10.1%), and Mingyang Smart Energy (+9.99%) [2]. Group 2: Industry Fundamentals - The wind power industry has experienced strong fundamentals, with the National Energy Administration reporting a 22.1% year-on-year increase in wind power installed capacity, reaching 58 million kilowatts [4][6]. - From January to August, the newly installed wind power capacity surged by 5,784 megawatts, reflecting a 2424% year-on-year growth [4][6]. - The total installed power generation capacity in China reached 369.379 million kilowatts, with a year-on-year growth of 18% [6]. Group 3: Policy Support - Recent policies have been favorable for the wind power sector, including the promotion of offshore wind power construction and the acceleration of large-scale onshore wind and solar bases [7]. - The Chinese government aims for non-fossil energy consumption to exceed 30% by 2035, with a target of wind and solar power capacity reaching six times that of 2020 [4][7]. Group 4: Market Outlook - International institutions have expressed optimism about the wind power industry, with Morgan Stanley upgrading its rating and predicting a rebound in pricing and profitability by early 2025 [8]. - Wood Mackenzie forecasts that global annual wind power installations will exceed 170 GW over the next five years, with China maintaining a leading position in the market [8]. - Chinese wind power companies are expanding their overseas presence, with significant project orders reported [8]. Group 5: Investment Recommendations - The wind power equipment sector is expected to maintain a competitive advantage in exports, particularly in the context of ongoing trade conflicts [9]. - Companies with strong overseas expansion capabilities, such as Oriental Cable and Daikin Heavy Industries, are recommended for investment [9].

Report Core View - The report focuses on the new energy installation progress in the power industry and provides an overview of mid - level events, industry status, and key data in various industries [1] Industry Overview Production Industry - On September 24, 2025, President Xi Jinping announced China's new national independent contributions at the United Nations Climate Change Summit. By 2035, China aims to reduce the net greenhouse gas emissions in the entire economy by 7% - 10% from the peak, increase the share of non - fossil energy consumption in the total energy consumption to over 30%, increase the total installed capacity of wind and solar power to more than 6 times that of 2020, striving for 36 billion kilowatts, reach a forest stock volume of over 240 billion cubic meters, make new energy vehicles the mainstream of new vehicle sales, cover major high - emission industries in the national carbon emissions trading market, and basically build a climate - resilient society [1] Service Industry - Nine departments including the Ministry of Commerce issued 13 policy measures to promote service exports, aiming to boost the high - quality development of service trade. These measures include leveraging existing funds, enhancing the guiding fund's role, optimizing tax - free procedures, and increasing export credit insurance support. Support is also provided for international data service businesses in areas like the Lin - gang New Area of the Shanghai Free Trade Pilot Zone and the Hainan Free Trade Port, and for establishing international data and cloud - computing centers in relevant areas [2] Upstream - In infrastructure, cement prices have increased; in agriculture, the prices of eggs and palm oil have declined [2] Midstream - The polyester operating rate in the chemical industry has slightly decreased [3] Downstream - In the real estate sector, the sales of commercial housing in first - and second - tier cities have declined; in the service sector, the number of domestic flights has remained stable [3] Key Data Agricultural Products - On September 24, the spot price of corn was 2,288.6 yuan/ton with a year - on - year decrease of 0.12%, the spot price of eggs was 7.8 yuan/kg with a - 3.13% change, the spot price of palm oil was 9,040 yuan/ton with a - 4.50% change, the spot price of cotton was 15,090.8 yuan/ton with a - 1.50% change, the average wholesale price of pork was 19.6 yuan/kg with a - 0.81% change [37] Metals - On September 24, the spot price of copper was 80,060 yuan/ton with a - 0.67% change, the spot price of zinc was 21,824 yuan/ton with a - 1.45% change, the spot price of aluminum was 20,693.3 yuan/ton with a - 1.02% change, the spot price of nickel was 122,633.3 yuan/ton with a - 0.31% change, the spot price of aluminum was 17,031.3 yuan/ton with a - 0.18% change, the spot price of螺纹钢 was 3,195 yuan/ton with a 1.49% change, the spot price of iron ore was 813.7 yuan/ton with a 0.76% change, the spot price of wire rod was 3,375 yuan/ton with a 0.75% change, the spot price of glass was 14.3 yuan/square meter with no change [37] Others - On September 24, the spot price of natural rubber was 14,983.3 yuan/ton with a - 0.72% change, the China Plastic City price index was 790.7 with a - 0.33% change, the spot price of WTI crude oil was 63.4 dollars/barrel with a 0.17% change, the spot price of Brent crude oil was 67 dollars/barrel with a - 0.70% change, the spot price of liquefied natural gas was 3,802 yuan/ton with a - 1.81% change, the coal price was 788 yuan/ton with a 1.03% change, the spot price of PTA was 4,572.9 yuan/ton with a - 1.64% change, the spot price of polyethylene was 7,350 yuan/ton with a - 0.63% change, the spot price of urea was 1,655 yuan/ton with a - 1.05% change, the spot price of soda ash was 1,262.5 yuan/ton with no change, the national cement price index was 134.1 (compared to 114.3) with a 2.68% change, the real - estate building materials comprehensive index had a 0.24% change, and the national concrete price index was 91.7 with a - 0.08% change [37]

Summary of Guodian Power's Conference Call Company Overview - **Company**: Guodian Power - **Industry**: Power Generation, specifically focusing on coal, hydro, and renewable energy Key Points and Arguments Financial Performance and Market Position - In early 2022, Guodian Power benefited from high coal prices due to long-term coal agreements, leading to significant excess returns. However, by the end of 2022, falling coal prices reduced the elasticity of thermal power operations, causing excess returns to converge [2][3] - The company's asset structure is balanced, comprising thermal, hydro, and renewable energy, which mitigates the impact of coal price fluctuations. Guodian's large thermal power units have a coal consumption rate approximately 10% lower than the industry average [2][8] - Guodian Power's stock performance since 2022 has outperformed comparable state-owned enterprises, attributed to an increase in renewable energy installation targets from 15 million kW to over 30 million kW, which spurred a significant market reaction [3][5] Future Growth and Development - The commissioning of the Shuangjiangkou Reservoir is expected to enhance Guodian's hydroelectric pricing and utilization hours, potentially generating an additional revenue of approximately 600 million yuan from 3 billion kWh of electricity [4][20] - Guodian Power plans to expand its renewable energy capacity significantly, with a target of 30 million kW during the 14th Five-Year Plan period, which is anticipated to improve cash flow and stabilize dividend expectations [21] - The company is expected to maintain stable profitability, particularly in the second half of the year when the advantages of long-term coal contracts are expected to re-emerge [12] Asset Optimization and Cost Control - Guodian Power has been actively optimizing its thermal power assets by divesting underperforming assets and increasing the proportion of high-quality resources, which has improved overall asset quality and reduced impairment losses [9][12] - The utilization hours for Guodian's thermal power operations are projected to exceed 5,000 hours in 2024, significantly higher than the national average of under 4,500 hours, showcasing strong operational efficiency [10][12] Competitive Landscape and Market Dynamics - The hydroelectric market in Sichuan is competitive, but the commissioning of the Shuangjiangkou Reservoir is expected to improve Guodian's pricing power and operational efficiency [18][20] - The company’s net profit is currently around 900 million yuan, with the Dadu River contributing approximately 700 million yuan. The additional electricity generated from new projects is expected to significantly enhance profitability [19][20] Investment Outlook - Guodian Power's fundamentals are in a continuous recovery phase, with stable dividend expectations and growth in scarce market segments making it an attractive investment opportunity [22] - Despite a decline in profitability in 2025 due to a high base effect from asset sales in 2024, the company is still showing growth in its core operations [22] Additional Important Insights - The company’s ability to maintain a high return on equity (ROE) and stable profitability in the thermal power sector is noteworthy, especially in the context of fluctuating coal prices [15][16] - The strategic focus on large thermal units with lower depreciation costs positions Guodian Power favorably in the current market environment [16]

Investment Rating - The report maintains a "Buy" rating for both A and H shares of the company [4][6]. Core Insights - The company achieved a revenue of 37.624 billion yuan in H1 2025, a year-on-year increase of 14.26%, with a net profit attributable to shareholders of 1.910 billion yuan, up 12.91% year-on-year [1]. - The clean and efficient energy equipment segment is driving revenue growth, with H1 revenue from this segment reaching 16.767 billion yuan, marking a historical high for the same period [1]. - New effective orders increased to 65.485 billion yuan in H1 2025, a 16.78% year-on-year growth, with significant contributions from clean energy and renewable energy equipment [2]. - The company is solidifying its traditional advantages while accelerating the implementation of strategic emerging industries, including significant orders in hydropower, nuclear power, and hydrogen energy projects [3]. Summary by Sections Financial Performance - In H1 2025, the company reported a gross margin of 15.46%, slightly higher than the same period last year, with the highest revenue contributions from clean efficient power generation equipment, new energy, and emerging growth industries [1]. - The company’s revenue growth is supported by a strong performance in the clean and efficient energy equipment sector, with gross margins for key products increasing by 1.10, 1.28, and 0.94 percentage points respectively [1]. Order Growth - The company’s new effective orders in H1 2025 reached 65.485 billion yuan, with clean efficient energy equipment and renewable energy equipment accounting for 37.59% and 30.82% of the total orders respectively [2]. - The clean efficient power generation equipment segment saw a year-on-year order growth of 32.57%, while renewable energy equipment orders grew by 38.74% [2]. Strategic Development - The company is enhancing its market position in traditional sectors such as hydropower and nuclear power, while also making strides in emerging industries like offshore wind power and hydrogen energy [3]. - The establishment of new manufacturing bases for renewable energy equipment and successful project implementations in hydrogen energy demonstrate the company's commitment to diversifying its portfolio [3].

Summary of Guotou Electric Power Conference Call Company Overview - Guotou Electric Power's clean energy installed capacity reached 71.84% in the first half of 2025, primarily driven by hydropower, with a diversified structure including thermal, wind, and solar power [2][4] - The company's market capitalization is approximately 118 billion yuan, with total assets of 315.3 billion yuan and net assets of 116.4 billion yuan [2][4] - Total profit for the first half of 2025 was 8.2 billion yuan, despite a 5.18% year-on-year decline in revenue to 25.6797 billion yuan [2][4] Financial Performance - The net profit attributable to shareholders increased by 1.36% year-on-year to 3.795 billion yuan, aided by a targeted issuance of 7 billion yuan [2][4] - The company's electricity generation remained stable at 75.2 billion kWh, with a slight decrease in the average electricity price [2][4] - Earnings per share decreased by 2.84% to 0.4763 yuan [4] Operational Highlights - The company is actively advancing hydropower station construction with a total installed capacity of 3.72 million kW and expanding existing thermal power units [2][5] - Guotou Electric Power is focusing on the development of the Yalong River integrated water, wind, and solar base, with a construction scale of 4.77 million kW [2][5] - The company is also addressing policy changes and emphasizing high-quality renewable energy project development while managing project risks [2][5] Market Dynamics - Fluctuations in the Jiangsu spot market have impacted the external electricity price from Yalong River, necessitating attention to potential adjustments in capacity fees and annual contract prices [2][6] - Overall electricity prices have decreased year-on-year, with varying impacts across different power sources; thermal power competition has intensified, leading to price declines [2][8] Future Outlook - Guotou Electric Power plans to add 3-4 million kW of new renewable energy capacity in 2025, with hydropower from the Yalong River accounting for about two-thirds of this [3][9] - The company is optimistic about future profitability despite challenges in the thermal power market, with expectations of stable income from new projects [10][14] Challenges and Risks - The company faces challenges from policy changes affecting green electricity trading and the impact of coal price fluctuations on procurement costs [13][15] - The introduction of new trading rules by the National Development and Reform Commission may influence the company's operational strategies [20][21] Additional Insights - The first half of 2025 saw a 15% year-on-year decrease in coal procurement prices, with long-term contracts making up 65% of total procurement [13] - The profitability of the new units in the Qinzhou project is expected to be stable despite increased competition and limited demand growth [10][12] - The company is adjusting its project development strategies in response to market conditions and regulatory changes, particularly in the context of the dual carbon goals [28]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved a year-on-year increase of 32% in net profit attributable to shareholders in Q2, and it plans to distribute its first interim dividend [2] - The company's revenue for H1 2025 was 57.19 billion yuan, a decrease of 1.9% year-on-year, while the net profit attributable to shareholders was 4.58 billion yuan, an increase of 47.3% year-on-year [5][7] - The company has adjusted its dividend policy to distribute at least 50% of net profit attributable to shareholders in cash annually [5] Financial Performance Summary - In H1 2025, the company's total profits from coal, wind, hydro, and solar power were 3.15 billion, 1.94 billion, 1.21 billion, and 0.4 billion yuan respectively, with year-on-year increases of 109%, 71.3%, 17.2%, and 3.6% [7] - The company's asset impairment losses decreased by 6.9 billion yuan year-on-year to 270 million yuan in H1 2025 [7] - The company reported an operating cash flow of 15.56 billion yuan in H1 2025, a year-on-year increase of 39.8% [7] Earnings Forecast and Valuation - The company is expected to generate revenues of 119.6 billion, 123.1 billion, and 124.6 billion yuan for the years 2025 to 2027, with net profits of 5.94 billion, 6.37 billion, and 6.88 billion yuan respectively [9][10] - The corresponding price-to-earnings ratios (PE) are projected to be 11, 10, and 10 for the same years [9][10] - The report anticipates steady growth in profitability for 2025, maintaining the "Buy" rating [7][10]